The cost of chartering and leasing aircraft shows little sign of easing, as a combination of geopolitical tensions, production delays and maintenance backlogs continues to constrain global aviation capacity. According to Richard Mumford, a partner at law firm Clyde & Co and a specialist in aircraft leasing, the sector remains under considerable strain, particularly in the short-haul market.
Tariffs, engine issues and delivery delays combine to squeeze global capacity
The cost of chartering and leasing aircraft shows little sign of easing, as a combination of geopolitical tensions, production delays, and maintenance backlogs continues to constrain global aviation capacity. According to Richard Mumford, a partner at law firm Clyde & Co and a specialist in aircraft leasing, the sector remains under considerable strain, particularly in the short-haul market.
Speaking at an industry forum, Mumford described the current ACMI (aircraft, crew, maintenance, and insurance) landscape as “difficult” and noted that the leasing market is “overheated because airlines can’t get more aircraft”. With demand outstripping supply, fares remain elevated and carriers post profits—yet the pressure on equipment availability is mounting. Airlines are hanging on to older aircraft that might otherwise be retired and stripped for parts, further tightening the already stretched parts market.
Mumford said:
“The aircraft aren’t coming out of service, so you don’t get the natural flow of parts back into circulation,”
He goes on:
“This is compounding the problem.”
Supply Chain and Sustainability Pressures Feed the Backlog
Mumford also pointed to persistent supply chain problems and manufacturing delays from Boeing and Airbus. “They couldn’t keep up with orders even before Covid,” he said. “Now, there are simply too many orders for the manufacturers to fulfil.” He criticised the lack of transparency around delays, particularly from Boeing, whose recent technical and safety failures have made headlines globally.
The drive toward more environmentally efficient aircraft has also introduced new challenges. Next-generation engines, while cleaner, are proving to be maintenance-heavy and less durable than hoped. “They’re taking too long to fix and aircraft are spending more time on the ground,” said Mumford, adding that some are out of service for up to a year.
Exacerbating the issue is a shift in the industry model, with engine manufacturers increasingly taking over the maintenance process. While this centralisation was intended to improve efficiency, it has instead contributed to what Mumford called “massive problems” in keeping aircraft operational.
Industry leaders have voiced mounting frustration. At the start of the year, IATA Director General Willie Walsh described the state of aircraft deliveries and engine reliability as “unacceptable”. He warned that the sector faces a growing number of grounded aircraft and high leasing costs, saying, “The durability of newer engines is nowhere near what we’re used to. We see more and more problems.”
With little immediate relief on the horizon, the market looks set to remain tight for the foreseeable future—a sobering prospect for operators and lessors alike.
What do you think about the rising costs of travel? Let us know below!
